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Rubicon: The Next Monsanto In The Making?

Rubicon, Tenon, and ArborGen

Rubicon is based in New Zealand. Shares trade on the pink sheets (OTCPK:RUBNF) and the New Zealand Stock Exchange as RBC. The stock is highly illiquid with over 80% of the float owned by insiders and hedge funds.

Rubicon is a unique holding company with equity stakes in two separate businesses: Tenon (OTCPK:TNNFF) and ArborGen (ARBR). Let me start out saying that I hardly care about the Tenon asset. Tenon is leveraged to the new housing market in the U.S. and should be a beneficiary of the broader housing market going forward. Management estimates this business will print upwards of $45 million in EBITDA at mid-cycle.

ArborGen is much...

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